Pret a Manger - Global Entrepreneurship

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Transcript of Pret a Manger - Global Entrepreneurship

First store was launched in LondonPret a Manger all over the world Pret a Manger in Hong Kong Valuable LessonsThe importance of cultural differencesRapid expansion might lead company fall into dilemma The two sides of partnership -> Advantage vs Disadvantage T he importance of locational selection First shop: 2002Operation Shops: 14

Success factorsCentral business locationAdapt local culture Pret a Manger in France First shop: 2012Operation Shops: 9

Founder: Julian Metcalfe and Sinclair Beecham With its international expansion, the founders of Pret-a-manger correspond with the particular features of being the successful international entrepreneurs

The entrepreneursWhy did we choose this company ?The Country of OriginJapan - A failed attemptThe Fast Food and Take Away marketPoliticalEconomicSocialTechnologicalGovernment's plan to fight against obesity- Crisis consequences:-> lower purchase power-> cheap take-away options more popular- Entrance of international competitorsPositioningQualityPriceSep 2002: Entered Japan marketEntry strategy: Joint Venture 50/50 with the Japanese McDonaldOpened 14 stores in the first yearNovember 2003: McDonald’s Japan announced to pull out of the Pret partnershipApril 2004: Closed down all stores after 18 months operatingA promising yet challenging market• Capital city: Tokyo• Population 127.6 million (2012)• Currency: Yen

1. Introduction 2. UK - Origin Country 4. Japan - A failed attempt5. Conclusion Japan at a glanceRelied too much on market research and experience of McDonald's JapanFailed to obtain market information needed Too ambitious : expanded 14 stores at once with extremely high management costis KeyJapanese customer- Picky- Fickle shoppersTasteCostAmbiancePret a Manger- On-the-go, cold sandwiches- Pricy* Before: 9/11 (2001)* Legal: Common Law same as UK law system USUKFranceUKFranceUSP(Elvis's part)• The 2nd largest retail market after the USA

• Sophisticated, quality conscious consumers with high purchasing power

• Japanese consumers spend more than 20 % of their budgets on FOOD -The spectacular beginning in the UK

REFERENCESREFERENCES12. Bureau of Labor Statistics (2009) How do U.S. expenditures compare with those of other countries? Available from http://www.bls.gov/opub/focus/volume2_number16/cex_2_16.htm [Accessed 23 February]13. Japan Retail News (2009) Retails & Consumer Goods in Japan. Available from http://www.japanretailnews.com/retail--consumer-goods-japan.html [Accessed 23 February]14. Japan Retail News (2009) Companies that failed in Japan. Available from http://www.japanretailnews.com/2/post/2009/12/companies-that-failed-in-japan.html [Accessed 23 February]15. Just Food (2004) A doomed venture: How Pret A Manger failed in Japan. Available from http://www.just-food.com/analysis/how-pret-a-manger-failed-in-japan_id94145.aspx [Accessed 23 February]16. Kam City (2004) Japan: Pret a Manger retreats from Japanese Market. Available from http://www.kamcity.com/namnews/asp/newsarticle.asp?newsid=17884 [Accessed 23 February]17. London Evening Standard (2002) Pret to join McDonald’s in Japan. Available from http://www.standard.co.uk/news/pret-to-join-mcdonalds-in-japan-6309853.html [Accessed 23 February]18. The Japan Times News (2002) McDonald’s logs’01 sales decline on mad cow scare. Available from http://www.japantimes.co.jp/news/2002/02/16/business/mcdonalds-logs-01-sales-decline-on-mad-cow-scare/ [Accessed 23 February]19. The Japan Times Community (2003) Sandwich bars spread thick and fast. Available from http://www.japantimes.co.jp/community/2003/03/09/general/sandwich-bars-spread-thick-and-fast/ [Accessed 23 February]20. World Bank Japan World Development Indicators. Available from http://databank.worldbank.org/data/views/reports/tableview.aspx [Accessed 23 February]